CDMA PREDICTS CANADA POST WILL LOSE MONEY
By Adnews Staff
A survey of direct marketers being released today indicates that Canada Post will suffer a sharp drop in addressed admail if it goes ahead with a proposed 30% postage increase. The survey was conducted by the Canadian Direct Marketing Association and will be discussed at its Database and List Council luncheon today. "It appears that they (Canada Post) have woefully underestimated the extent to which direct marketers are prepared to switch to alternative media," says CDMA president John Gustavson.There will be a 31.4% drop in addressed admail if the increase goes ahead, according to the survey; but if rates were to stay the same or increase only slightly, the volume would go up 10.3%. Along with the drop in admail, says the CDMA, there would be a decline in invoices, parcels, payments, inquiries and other follow-up communications between businesses and customers. With this taken into account, Canada Post could lose $212 million in revenue in 1996. The respondents to the survey send out 38.6% of Canada's addressed admail.